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City of Roseville <br />Financial Impacts of a Local Sales Tax and Property Tax Supported Bonds <br />April, 2006 <br />Option �� - Local sales tax <br />Total taxable sales in Roseville (2004) <br />Sales tax proceeds per annum <br />@ 0.12s % <br />@ 0.25 % <br />@ 0.50 % <br />@ 0.75 % <br />�?a 1.0 % <br />Amount of Bonds that could be supported <br />@ 0.125 % <br />@ 0.25 % <br />@ 0.50 % <br />@ 0.75 % <br />@ 1.0% <br />Estimated annual household taxable purchases <br />Estimated annual impact <br />@ 0.125 % <br />�a 0.25 % <br />@ 0.50 % <br />@ 0.75 % <br />@ 1.Q % <br />� ! , � � �,�J�(a.� � I <br />$ 1,567,101 <br />3,134,202 <br />6,268,403 ---� e.g. a�12% sales tax will generate <br />9,402,605 over $6 million annually <br />12,536,806 <br />** with debt service over 5 year period @ 5% <br />7,000,000 <br />14,000,000 <br />28,000,000 <br />42,000,000 <br />56,000,000 <br />.�, �,tl�l(1 � I t�,Ofi�i � :?C�,r�CaCa <br />$ <br />6 <br />13 <br />25 <br />38 <br />50 <br />Annual impact <br />$ 13 <br />25 <br />50 <br />75 <br />100 <br />$ <br />Comments: <br />On a 100 purchase, a 112% sales tax is 0.50 cents. The $1 p0 purchase becomes $100.50. A$25,000 <br />purchase becomes $25,125. <br />* An estimated 75% of all taxable sales in Roseville comes from non-roseville residents. Based on this <br />only 25% of the burden would fall on residents, the other 75 is exported. <br />* Studies by the MN Department of Revenue have shown that after a sales tax is imposed, sales continued <br />to increase. The presence of a local sales tax did not appear to affect consumer purchasing habits. <br />25 <br />50 <br />100 <br />150 <br />200 <br />